Decision Expected Today On CAT-True Injunction

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Decision expected today on CAT-True injunction

By THE NATION

The Central Administrative Court is expected to decide today whether to issue an injunction restraining CAT Telecom from going forward with the deals it signed with True Corp group for collaboration on third-generation wireless broadband service using high-speed packet access (HSPA) technology.

This follows a complaint to the court by Total Access Communication (DTAC) on April 25 against CAT and its board of directors, seeking judicial review of the legality of the deals. DTAC also asked the court to issue an injunction until all relevant authorities completely review the CAT-True transactions.

If the court approves a |judicial review, it will be the |third 3G-related case it has |considered. The first one was CAT's filing last September |challenging the National Telecommunications Commission's authority to |grant 3G licences for the 2.1-gigahertz spectrum, and the |second case was the Ericsson-|led consortium's filing against TOT's allegedly unfair bidder-qualification process in its |e-auction to procure a 3G |network.

The CAT-True deals also sparked a war of words last week between True and Somkiat Tangkitvanit, vice president of the Thailand Development Research Institute, on their legitimacy.

Somkiat said that if DTAC had not filed the complaint against CAT on the deals, it would have paved the way for True group to become the only telecom operator offering commercial 3G service, besides TOT, at the expense of market competition.

True strongly denied the charge, saying that besides TOT, CAT was the only main operator wholesaling the 3G service. Somkiat countered that as CAT had allocated 80 per cent of HSPA wholesale capacity for True, the group could be regarded as the network operator rather than CAT.

True is concerned about the financial effects of an injunction, as it could make it difficult for True to secure a Bt49-billion loan from a group of banks to develop the HSPA service.

In its court complaint, DTAC contends that the deals show discriminatory treatment by CAT against other operators by giving the opportunity only to True to provide commercial 3G services. It also expressed doubts whether the deals are in compliance with relevant laws.

-- The Nation 2011-05-18